Reliance Infra Share Price Rises After News of Its Foray Into the Aircraft Upgrades Business

Reliance Infra share price was up 3.28% and was trading at ₹384.00 at 9:37 AM. This follows news of its foray into India's defence industry, specifically in the specialised field of aircraft upgrades. According to news reports, the company aims for a substantial market opportunity of ₹5,000 crore over the next 7-10 years.

Traditionally, this work had been handled by public sector companies and original equipment manufacturers (OEMs). This strategic push positions RInfra as the first private Indian company to independently manage comprehensive aircraft upgrade programs. 

Why Aircraft Upgrades are Crucial

Military aircraft and helicopters have a long service life, typically 30-40 years. During this time, regular upgrades are essential to keep them modern and effective. Industry experts suggest that the money spent on upgrades and Maintenance, Repair, and Overhaul (MRO) throughout a platform's life can be as high as 200-300% of its original purchase cost.

Globally, the market for military aircraft and helicopter upgrades is enormous, estimated at over ₹5,00,000 crore annually, and is expected to grow to ₹700,000 crore in the next seven years. India, with its large number of older aircraft, presents a significant domestic opportunity for companies like Reliance Infrastructure as its armed forces look to modernise their fleets for future warfare.

Reliance Infra Has a Proven Track Record With Dornier-228s

RInfra has already achieved significant success by upgrading 55 Dornier-228 aircraft. This project was carried out under a contract with Hindustan Aeronautics Ltd (HAL), in collaboration with US-based avionics firm Genesys.

Initially, the contract was for 37 aircraft, but a repeat order for 18 more units was secured due to the successful completion of the initial phase. The total value of this Dornier upgrade contract was ₹350 crore. The upgraded Dornier fleet is now in service with the Indian Air Force, Indian Navy, and Indian Coast Guard.

Expanding Capabilities and Strategic Partnerships

Beyond the Dornier success, Reliance Infrastructure is actively working to expand its capabilities in aircraft and helicopter upgrades. The company partners with global firms to deliver top-notch solutions. RInfra is also involved in the performance-based logistics (PBL) program for Rafale fighter jets in India, in collaboration with Thales of France.

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Conclusion

Reliance Infrastructure’s investments in the aircraft upgrade sector align perfectly with the Indian government's 'Atmanirbhar Bharat' (self-reliant India) vision. For industry stakeholders and investors, the company’s focus on aircraft upgrades represents a high-potential opportunity within India's defence manufacturing and services sector. This strategy offers scope for international collaboration and stable, recurring revenue streams.

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